AP:
WASHINGTON - A Dubai-owned company said Thursday it is giving up its management stake in some U.S. ports, a move made as congressional leaders warned President Bush that both the House and Senate appeared ready to block the takeover.
It was not immediately clear whether the announcement would be enough to cool widespread sentiment in Congress to pass legislation blocking the deal, which has become a burdensome election-year problem for Republicans.
Sen. John Warner (news, bio, voting record), chairman of the Armed Services Committee, took the Senate floor to read to colleagues a company press release disclosing its new stance.
"Because of the strong relationship between the United Arab Emirates and the United States and to preserve that relationship, DP World has decided to transfer fully the U.S. operation of P&O Operations North America to a United States entity," DP World's chief operating officer, Edward H. Bilkey, said in the statement that Warner relayed to other senators. The announcement did not specify which American company would be involved.
The move came as the White House, facing a Republican rebellion in Congress, played down President Bush's veto threat and said he was trying to find a compromise to resolve the uproar over the company's plan to take over significant operations at several U.S. sea ports.
DP World said it will transfer all interest in U.S. port operations to an American-based company, but it was unclear immediately how DP World would manage the divestiture. The company indicated that details of the surprise deal were still being worked out.
Warner said that Sheikh Mohammed Al Maktoum, prime minister of the United Arab Emirates, "advised the company ... that this action is the appropriate course to take." Dubai is in the emirates.
Actually, this is very similar to a plan that I first saw, I believe, from Dafydd ab Hugh.
We will have to wait for the details, of course, but it is possible that the US "entity" might still be owned, though not operated, by DPW. Or it could go to Halliburton, which would be a riot.
This is likely to take some of the wind out of Democratic sails, as the party was itching for a showdown over this. The GOP leadership, lovely people that they are, didn't want to be left out of the pile-on and had told President Bush that the deal was dead.
All of this should have been done out of the glare of congressional searchlights. We have embarrassed an ally, and have been made to look as if we are a country of xenophobes. This whole debacle was mishandled by the administration firstly, and then ripped to shreds by the hyenas in Congress.
The statement by DPW is based on close relations with the US, but don't be surprised if base, landing and flyover rights are not forthcoming in the event of a confrontation with Iran.
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